Texas Refinery's Green Fuel Supply Chain Linked to Amazon Deforestation

Diamond Green Diesel, a Texas-based refinery producing green fuel for U.S. airlines, now finds itself entangled in controversy over its supply chain, which sources cattle fat from illegally deforested lands in the Amazon. This joint venture between Darling Ingredients and Valero Energy has transformed cattle fat into a cleaner alternative to traditional jet fuel and diesel, garnering over $3 billion in U.S. tax credits for biofuel production since 2022. However, recent investigations reveal that some suppliers of this cattle fat are linked to ranches operating in illegally cleared areas, raising serious questions about the refinery's sustainability claims.

The implications of these findings are significant for airlines like JetBlue and Southwest, which have invested in sustainable fuels to reduce their carbon footprints. Critics argue that despite certifications under the United Nations' CORSIA agreement aimed at mitigating aviation's climate impact, the refinery's ties to deforestation severely undermine these efforts and may contravene Brazilian law. This situation highlights the complex interplay between market demands for sustainable fuel and the environmental realities of its production.

The global market for sustainable jet fuel, while projected to grow, remains small compared to conventional aviation fuel, and increased demand could inadvertently fuel further deforestation in the Amazon. As highlighted by environmental experts, any surge in cattle ranching driven by biofuel production could exacerbate the destruction of vital ecosystems.

In the wake of these revelations, Diamond Green Diesel, alongside its parent companies, has not responded to inquiries regarding the Brazilian supply chain's legality and sustainability. Investigations have traced cattle fat sourced from ranches associated with illegal deforestation, raising alarms about the ethical implications of such practices. While advocates maintain that demand for tallow as a byproduct of the beef industry is unlikely to drive deforestation, the reality remains complex and fraught with environmental consequences.

The situation is further complicated by the certification processes that often overlook the origins of raw materials. Certifying bodies like the International Sustainability and Carbon Certification (ISCC) focus on the classification of tallow as a byproduct, which allows it to bypass scrutiny despite the environmental impact of its sourcing. Experts involved in the CORSIA design have noted that the assumptions underpinning these certifications could enable deforestation to continue unchecked.

As the aviation industry grapples with sustainability pressures, the operations of Diamond Green Diesel serve as a stark reminder of the challenges inherent in achieving true environmental responsibility in fuel production. The ongoing scrutiny of its supply chain underscores the need for greater transparency and accountability in the push for greener alternatives.